Post COVID-19, the global feed market size is estimated to grow from USD 282.8 billion in 2020 and projected to reach USD 289.0 billion by 2021, recording a CAGR of 2.2%. The increasing awareness about livestock nutrition, modernization of the livestock industry, and the rise in the consumption of meat & other livestock-based products have led to an increase in the market size of feed additives. However, due to COVID-19, feed manufacturers and producers are becoming more aware of techniques and strategies to cope up with the situation. This, in turn, is projected to lead to an increase in demand for feed additives, as the market growth starts stabilizing.
Supply chain disruptions and impact on feed production have affected the feed market.
The poultry industry is battling rumors of coronavirus spreading through the consumption of meat and meat products. In some regions, lockdowns have been announced to control the coronavirus pandemic, which has been impacting the movement of vehicles carrying livestock, feed, and feed ingredients. On the other hand, raw material price volatility is a major challenge faced by feed manufacturers worldwide during COVID-19.
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Shutdowns are leading to a loss in demand for meat, dairy, and animal products impacting the feed market.
Due to the COVID-19 pandemic, the demand for basic food or essentials has been on the rise. Despite the strong demand for meat, dairy, and aquaculture products amidst the coronavirus pandemic, the supply chain has witnessed a host of disruptions, which are stopping producers from providing their products in the market. For instance, disruptions in the supply chains are causing wastage of fresh produce in the US, even though there are a high demand and food shortage for dairy produce. Due to these factors, the market leader in the dairy industry, the Dairy Farmers of America, had to ask farmers to dump their milk.
The global export for beef and chicken meat trade has been reduced due to the emerging threats from the spread of COVID-19 pandemic. Furthermore, the economic growth in 2020 and the impact on consumers of the pandemic will dampen the demand for animal protein, subsequently affecting the feed market.
Cargill, a major producer of animal nutrition and health, has made an investment of USD 240 million to support livestock farmers in India (Kota, Rajasthan), as of February 2019. The motive behind the investment was to set up a greenfield premix plant in Kota, Rajasthan. The plans were shared at a meeting between the Cargill team, industries, and the government in Rajasthan.
Cargill Animal Nutrition is a global business unit of Cargill and has more than 23,000 employees with 280 facilities in 40 countries, serving customers in more than 100 countries. The company’s animal nutrition business manufactures and serves dairy, poultry, shrimp, and fish farmers with value-added products and services in India’s every state. Cargill sells its products under the animal health and nutrition brands, such as Bestmin Gold, UTPP, and G-promin.
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Archer Daniels Midland Company (NYSE: ADM) acquired Neovia with USD 1.68 billion (€1.544), creating a global leader in value-added products and solutions for companion animals.
According to the company, the acquisition of Neovia represents a major milestone in the execution of the company’s strategic plan to become a global leader in the livestock nutrition sector. The objective behind the acquisition is to expand its geographic reach and fulfill the need of its customers.